Daily Market Brief: Stocks Gain on Trade Optimism, Commodities Pull Back, Mortgage Rates Inch Higher

Image Source : Krish Capital Pty Ltd

Index Update: U.S. stocks were set to open higher, extending recent gains fueled by U.S.-China tariff reductions, though the rally's momentum appeared to be slowing. Futures on major indexes posted modest increases, with the Nasdaq leading. In premarket action, Nvidia rose over 3% on news it will supply AI chips to Saudi Arabia, while Super Micro Computer surged more than 15% after a $20 billion deal with Saudi data firm DataVolt. Among megacaps, performance was mixed, with Apple and Microsoft dipping slightly, while Amazon, Meta, Alphabet, and Tesla traded higher.

Market Movers: On Tuesday, the top gainers were iTeos Therapeutics, Inc (+22.03%), followed by Intuitive Machines, Inc (+16.42%). On the contrary GIBO Holdings Limited (-14.42%) and Halozyme Therapeutics, Inc (-13.58%) declined the most the same day.

Commodities Update: Oil prices eased slightly after a strong previous session, following data that showed an unexpected rise in U.S. crude inventories. WTI hovered around $63 per barrel and Brent around $66, trimming earlier gains. Despite the crude stock build, prices stayed near two-week highs, supported by ongoing geopolitical tensions with Iran, an improved global trade outlook, a temporary U.S.-China tariff reduction deal, and a weaker dollar. Market attention is now on President Trump’s upcoming Middle East visit during peak fuel demand season, with price stability likely a focus.

Gold prices dipped to around $3,230 per ounce, pressured by easing U.S.-China trade tensions, which reduced its safe-haven demand. The temporary tariff truce helped calm market fears, while lower-than-expected U.S. inflation gave the Fed more flexibility on potential rate cuts, offering some support to non-yielding assets like gold. Additionally, gold ETFs saw strong inflows in April, driven largely by demand from China.

Macro Update: The average interest rate for 30-year fixed-rate mortgages with conforming loan balances in the U.S. rose slightly to 6.86% for the week ending May 9, 2025, up from 6.84% the previous week and down from 7.08% a year earlier.

Futures Update: U.S. stock futures showed little movement as investors took a breather following recent gains driven by optimism over a U.S.-China trade deal. Major indexes had posted strong rebounds, with the S&P 500 turning positive for the year. Despite a sharp decline in UnitedHealth weighing on the Dow, the S&P 500 and Nasdaq Composite advanced, reflecting overall positive sentiment in the market.

Following a sharp rise during Monday's trading session, stocks continued to perform strongly on Tuesday. The S&P 500 reached its highest closing level in two months. The index climbed by 42.36 points, or 0.72%, to close at 5,886.54. Technical analysis indicates a bullish short-term outlook, as the price broke out of a trading range to the upside. Additionally, key moving averages are approaching a golden cross, suggesting an overall upward trend. Support levels are identified around 5,790, with resistance expected near 5,977.